Japanese company to build condo

Tatsumi Group plans a 120-unit residential high-rise in McCully

Hawaii's strong real estate market and an economic rebound in Japan have led a Japanese investor to acquire land and plan a 17-story residential condominium tower in McCully.

Tatsumi Group, a diversified real estate company headquartered in Osaka with properties in Japan, California and New York, has purchased the former Holo-Holo Auto dealership site, a 22,664-square-foot lot at the corner of Kalakaua Avenue and Fern Street, for an undisclosed price from a subsidiary of Taiwan-based Fu Tsu Construction Co.

The deal, which closed on Wednesday, is the company's first undertaking in Hawaii. Takao Shinomiya, the president of Tatsumi Group and head of its overseas affiliates, has interest in expanding in the state, said Jeannie M. Fogarty, the company's Realtor.

"Mr. Shinomiya spends a lot of time in Hawaii, and the development of residential housing here is a natural complement to the company's other holdings in the United States," she said.

The Tatsumi Group's Japanese banks are expected to provide financing for the 120-unit project, which is slated to begin next summer and has a tentative completion date of summer 2007.

Sales of studio and one-bedroom units are expected to begin in April, with prices ranging from $299,500 to $449,500 for fee-simple condominiums. The larger one-bedroom units are expected to be 690 square feet, excluding the lanais.

"The project is being targeted at the local market and prices will be reasonable for first-time buyers," Fogarty said. Each of the one-bedroom and studio units will have a full-sized kitchen, spacious lanai, full bath and other amenities including optional air conditioning and high-speed Internet access.

As Japan's economy continues to improve, Hawaii will likely see more Japanese investors coming back to the market, said Hideo Mita, independent agent with Fogarty Realty, which represented the buyer.

"After the bubble economy finished there were a lot of bad debts in Japan, but now almost all the liquidations have finished and that's why their interest has started to look overseas again," Mita said.